Skip to main content

Investing in Life Insurance

Buy Best Life Insurance Online


Buying life insurance can be a crucial decision. Some people may choose to buy a cover early in life. Others may leave it until later. If you are thinking of investing in a life insurance policy, here are 10 points you may want to know.


1. Necessity: Investing in a life insurance policy can make complete sense if you are taking care of other people. Life insurance provides more than the death benefit. It may help you prepare for any uncertainties. But what if you plan to remain single? Or, you do not have any future liabilities? Then you may think again before buying a life insurance policy.


2. Purpose: You may feel investing in life insurance is a fundamental need. Then consider the purpose of buying your policy. For example, do you expect your policy to pay for your child's education in case of an uncertainty? Or, do you want it as a security for your high-risk job?


3. Coverage: Individuals need different insurance covers. What is the amount of cover you need? Your annual income may not be the ideal figure to calculate your desired cover. You may want to consider other important factors before deciding. What is your age, profession, and medical condition? How many people are dependent on you? What are your financial goals?


4. Category: If you are clear about the purpose of your life insurance and the amount of cover you need, it will help you choose the category of insurance you want to buy. You can opt for either a term insurance cover or a whole insurance cover. Do you want to pay a fixed premium rate for a specific period of cover? Then a term insurance is best for you.


5. Debt: When you decide to invest in a life insurance policy, you have to know how much you are able to pay. So you may want to consider any debts you already have. These existing debts could hamper your ability to pay the insurance premium on time. This delay could end your policy. Most insurance companies may also increase the premium when you renew your policy.


6. Investment: You may not want to ignore the investment element while purchasing a life insurance cover. A unit-linked insurance policy (ULIP) provides for death benefit and financial security. It may also provide an opportunity for your investment to grow by linking it to the stock market.


7. Protection: Your life insurance policy may pay for unexpected events such as death, disability, and sickness. It could provide protection to your loved ones by reducing the effects of loss of income due to death. You can even draw a loan against your life insurance policy. Many banks and financial institutions accept it as a guarantee.


8. Savings: Investing in a life insurance policy could lead to savings. A term life insurance could leave you with cash in hand. You could use this money for other investments. For example, you could pay a certain amount of premium for a specific time. You could then use the rest of the insurance amount to buy a child plan. You may accumulate cash value with permanent life insurance and get tax-deferred growth.


9. Tax benefits: Life insurance premiums are exempt from tax up to a certain amount. The claim amount received by the beneficiary is also tax-free. But each policy is different. So it is important for you to know how much you will be paying to keep your policy practical. Sometimes the cost may be more than the tax benefits.


10. Terms: Each life insurance policy has different terms and conditions. You need to understand and read the complete policy document before signing to buy. You may want to know the future impact on the premium. You may also want to know if there is any bonus or cash value that you could withdraw in the near future.







------------------------------------------
Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds

Top 4 Tax Saver Mutual Funds for 2017

Best 4 ELSS Mutual Funds to invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Invesco India Tax Plan

3. Tata India Tax Savings Fund

4. BNP Paribas Long Term Equity Fund



Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact Prajna Capital on 94 8300 8300

--------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Call us on 94 8300 8300

---------------------------------------------

 

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...

Choose gold ETF over Physical Gold

Investing in gold is overall a good portfolio hedging strategy as long as gold does not account for more than 5-10 per cent of your investment portfolio. Between physical gold and gold ETF, investing in gold ETF is a better proposition because these funds invest in physical gold making them the closest to investing in physical gold at no risk of holding physical gold.   You will need to have a demat account to invest in gold ETFs and there is little to choose between any of the gold ETFs, you can pick any fund that you wish to as long as you pick the fund with the lowest expense ratio.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Reliance Mutual Funds: http://prajnacapital....

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...

JM Financial Mutual Fund - Its Schemes

  JM Financial Mutual Fund is a part of JM Financial Group which is one of the first mutual fund companies in India which started its operation in 1993-1994. JM Financial Asset Management Limited is sponsored by JM Financial group. The mission of the group company is to generate good returns in all the product categories. JM Financial Mutual Fund has launched a variety of schemes in the following categories. ·                            Equity ·                            Debt ·                            Arbitrage ·                            Liquid Equity Schemes: The schemes that are launched in the equity category are: ·                            JM Midcap Fund ·                            JM Balanced Fund ·                            JM Agri and Infra Fund ·                            JM Basic Fund ·                            JM Contra Fund ·                            JM Contra Fund ·                            JM Emerging Leaders Fund ·             ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now